SDG&E to Launch Annual Solicitations for Renewable and Conventional Energy Resources

SAN DIEGO, CA, Jun 10 (MARKET WIRE) --
San Diego Gas & Electric (SDG&E) today announced it will be launching two
competitive solicitations this summer seeking a supply of renewable and
conventional energy resources to meet customers' needs over the next
several years.

The solicitations, also known as "Requests for Offers" (RFOs), will help
SDG&E meet its goal of expanding its portfolio of clean, renewable power
for the region, increasing reliability and meeting state mandates. Both
solicitations will be launched this month.

SDG&E and the state's other investor-owned utilities issue annual power
solicitations based on state policy, which outlines the process of
securing resources. The state policy specifies that, when planning for
demand growth, energy efficiency and renewable energy take priority.

"SDG&E is fully committed to investing in renewable resources and
continues to aggressively pursue renewable energy from a variety of
sources," said Matt Burkhart, vice president of electric and fuel
procurement for SDG&E. "The renewable solicitation for clean power is the
next step in our plan to acquire 33 percent of our energy from renewable
resources by 2020."

SDG&E expects that 26 percent of its electricity supply will come from
renewable sources by 2012 based upon signed contracts secured through
previous solicitations.

Even with SDG&E's aggressive outreach for renewable energy, the utility
must continue to acquire some conventional generation resources to meet
customer demand, replace expiring power contracts and back up intermittent
renewable energy resources that are being added to the electric grid,
Burkhart said. The conventional generation solicitation seeks a
combination of demand-reduction commitments and new or existing generation
projects.

SDG&E's upcoming renewable energy solicitation is targeting solar, wind,
geothermal, biomass or any other clean, renewable resource that qualifies
under the state's Renewable Portfolio Standard program. The plants that
produce the power can be inside or outside the SDG&E service territory.

The evaluation and selection of offers from both RFOs will include active
participation by SDG&E's Procurement Review Group, comprised of California
Public Utilities Commission (CPUC) staff, consumer advocates and other
non-market participants, as well as an independent evaluator. These
entities are involved at all stages of the process, including the
preparation of the RFOs, bid evaluation and determination of the final
"short list" of bidders. Once the evaluation process is completed,
proposed contracts are subject to CPUC review and approval.

After the solicitations are issued, additional information will be
available on SDG&E's Web site, www.sdge.com. SDG&E is a regulated public
utility that provides safe and reliable energy service to 3.4 million
consumers through 1.4 million electric meters and more than 840,000
natural gas meters in San Diego and southern Orange counties. The
utility's area spans 4,100 square miles. Exceptional customer service is
a priority of SDG&E as it seeks to enhance the region's quality of life.
SDG&E is a subsidiary of Sempra Energy (NYSE: SRE), a Fortune 500 energy
services holding company based in San Diego.

Media Contact:
Jennifer Ramp
San Diego Gas & Electric
(877) 866-2066
www.sdge.com

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